2013 -- S 1026

=======

LC02891

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO TOWNS AND CITIES - RETIREMENT OF MUNICIPAL EMPLOYEES

     Introduced By: Senators Gallo, Miller, and Lombardi

     Date Introduced: June 25, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 45-21-8 of the General Laws in Chapter 45-21 entitled "Retirement

1-2

of Municipal Employees" is hereby amended to read as follows:

1-3

     45-21-8. Membership in system. -- Membership in the retirement system does not begin

1-4

before the effective date of participation in the system as provided in section 45-21-4, and

1-5

consists of the following:

1-6

      (a) Any employee of a participating municipality as defined in this chapter, who

1-7

becomes an employee on and after the effective date of participation, shall, under contract of his

1-8

or her employment, become a member of the retirement system; provided, that the employee is

1-9

not receiving any pension or retirement allowance from any other pension or retirement system

1-10

supported wholly or in part by a participating municipality, and is not a contributor to any other

1-11

pension or retirement system of a participating municipality. Any employee who is elected to an

1-12

office in the service of a municipality after the effective date and prior to July 1, 2012, has the

1-13

option of becoming a member of the system, which option must be exercised within sixty (60)

1-14

days following the date the employee assumes the duties of his or her office, otherwise that

1-15

person is not entitled to participate under the provisions of this section;

1-16

      (b) Any employee or elected official of a participating municipality in service prior to

1-17

the effective date of participation, who is not a member of any other pension or retirement system

1-18

supported wholly or in part by a participating municipality, and who does not notify the

1-19

retirement board in writing before the expiration of sixty (60) days from the effective date of

1-20

participation that he or she does not wish to join the system, shall automatically become a

2-1

member; and

2-2

      (c) Any employee of a participating municipality in service prior to the effective date of

2-3

participation, who is a member of any other pension or retirement system supported wholly or in

2-4

part by a participating municipality on the effective date of participation of their municipality,

2-5

who then or thereafter makes written application to join this system, and waives and renounces all

2-6

accrued rights and benefits of any other pension or retirement system supported wholly or in part

2-7

by a participating municipality, becomes a member of this retirement system and shall not be

2-8

required to make contribution under any other pension or retirement system of a participating

2-9

municipality, any thing anything to the contrary notwithstanding.

2-10

      (d) Notwithstanding the provisions of this section, present firefighters employed by the

2-11

town of Johnston shall establish a pension plan separate from the state of Rhode Island retirement

2-12

system. If the town of Johnston is thirty (30) days or more late on employer or employee

2-13

contributions to the pension plan, the auditor general is authorized to redirect any Johnston funds

2-14

to cover the shortfall or to deduct that amount from any moneys due the town from the state for

2-15

any purpose other than for education. Disability determinations of present firefighters shall be

2-16

made by the state retirement board, subject to the provisions of section 45-21-19 at the town of

2-17

Johnston's expense. All new firefighters hired by the town of Johnston shall become members of

2-18

the state retirement system.

2-19

      (e) Notwithstanding the provisions of this section, any City of Cranston employees, who

2-20

are presently members of the Teamsters Local Union No. 251, hired between the dates of July 1,

2-21

2005 and June 30, 2010 inclusive and who are currently members of the retirement system

2-22

established by this chapter, may opt out of said retirement system and choose to enroll in a

2-23

defined contribution plan (i.e., a 403 (b) plan or equivalent thereof) established by the City of

2-24

Cranston.

2-25

     (f) Notwithstanding the provisions of this section, any City of Cranston employees, who

2-26

are presently members of the Laborers International Union of North America Local 1322 hired

2-27

between the dates of July 1, 2008 and June 30, 2013 inclusive and who are currently members of

2-28

the retirement system established by this chapter, may opt out of said retirement system and

2-29

choose to enroll in a defined contribution plan (i.e., a 403(b) plan or equivalent thereof)

2-30

established by the City of Cranston.

2-31

     (f)(g) Notwithstanding the provisions of this section, any City of Cranston employees,

2-32

who will be members of Teamsters Local Union No. 251, hired after June 30, 2010 shall be

2-33

enrolled in a defined contribution plan (i.e., a 403 (b) plan or equivalent thereof) established by

2-34

the City of Cranston and shall not be a member of the retirement system established by this

3-1

chapter.

3-2

     (h) Notwithstanding the provisions of this section, any City of Cranston employees, who

3-3

are presently members of the Laborers International Union of North America Local 1322 hired

3-4

after April 23, 2013 shall be enrolled in a defined contribution plan (i.e., 403(b) plan or

3-5

equivalent thereof) established by the City of Cranston and shall not be a member of the

3-6

retirement system established by this chapter.

3-7

      (g)(i) Notwithstanding the provisions of this section, any City of Cranston employees

3-8

defined in (e) and (f) of this section shall be precluded from purchase of service credit for time

3-9

served on or after July 1, 2010 while participating in the defined contribution plan (i.e., a 403 (b)

3-10

plan or equivalent thereof) established by the City of Cranston should the member cease

3-11

employment with the City of Cranston or Teamsters Local Union No. 251 and re-enter the system

3-12

with another participating employer who has accepted the provisions, as defined, in section 45-

3-13

21-4.

3-14

      (h)(j) Notwithstanding the provisions of this section, any town of Middletown

3-15

employees, who will be members of the Teamsters Local Union No. 251 bargaining unit, hired

3-16

after June 30, 2012, shall be enrolled in a defined contribution plan (i.e., a 403(b) plan or

3-17

equivalent thereof) established by the town of Middletown and shall not be members of the

3-18

retirement system established by this chapter. Said town of Middletown employees defined herein

3-19

shall be precluded from the purchase of service credit for time served on or after July 1, 2012

3-20

while participating in the defined contribution plan (i.e., a 403(b) plan or equivalent thereof)

3-21

established by the town of Middletown should the member cease employment with the town of

3-22

Middletown or in the Teamsters Local Union No. 251 bargaining unit and re-enter the system

3-23

with any participating employer who has accepted the provisions, as defined in section 45-21-4.

3-24

      (i)(k) Notwithstanding the provisions of this section, any town of Middletown

3-25

employees, who will be members of the Middletown Municipal Employees Association NEARI

3-26

Local 869 bargaining unit, hired after June 30, 2012, shall be enrolled in a defined contribution

3-27

plan (i.e., a 403(b) plan or equivalent thereof) established by the town of Middletown and shall

3-28

not be members of the retirement system established by this chapter. Said town of Middletown

3-29

employees defined herein shall be precluded from the purchase of service credit for time served

3-30

on or after July 1, 2012 while participating in the defined contribution plan (i.e., a 403(b) plan or

3-31

equivalent thereof) established by the town of Middletown should the member cease employment

3-32

with the town of Middletown or in the Middletown Municipal Employees Association NEARI

3-33

Local 869 bargaining unit and re-enter the system with any participating employer who has

3-34

accepted the provisions, as defined in section 45-21-4.

4-1

      (j)(l) Notwithstanding the provisions of this section, any Cranston public school

4-2

employees, who will be members of National Association of Government Employees (NAGE),

4-3

Local RI-153, hired after June 30, 2012 shall be enrolled in a defined contribution plan (i.e., a

4-4

401(a) plan or equivalent thereof) established by the Cranston school department and shall not be

4-5

a member of the retirement system established by this chapter.

4-6

      (k)(m) Notwithstanding the provisions of this section, any Cranston public school

4-7

employees defined in subsection (h) shall be precluded from the purchase of service credit for

4-8

time served on or after July 1, 2012, while participating in the defined contribution plan (i.e., a

4-9

401(a) plan or equivalent thereof) established by the Cranston public schools, should the member

4-10

cease employment with the Cranston public schools or National Association of Government

4-11

Employees (NAGE), Local RI-153 and re-enter the system with another participating employer

4-12

who has accepted the provisions, as defined, in section 45-21-4.

4-13

     SECTION 2. This act shall take effect upon passage.

=======

LC02891

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TOWNS AND CITIES - RETIREMENT OF MUNICIPAL EMPLOYEES

***

5-1

     This act would provide that any City of Cranston employee who is presently a member of

5-2

Laborers International Union of North America Local 1322, and hired between July 1, 2008 and

5-3

June 30, 2013 and currently a member of the retirement system, may opt out of the retirement

5-4

system and enroll in a defined contribution plan established by the City of Cranston.

5-5

     This act would further provide that any City of Cranston employee who is presently a

5-6

member of Laborers International Union of North America Local 1322, and hired after April 23,

5-7

2013 would be enrolled in a defined contribution plan established by the City of Cranston, and

5-8

would not be a member of the retirement system.

5-9

     This act would take effect upon passage.

=======

LC02891

=======